Controversial Land Acquisition Bill cleared by Union Cabinet, land prices expected to rise
Acquisition Act, 1894 had no provision for return of the unutilised land.
Realty developers expect prices to go up after Bill approval
Real estate developers and consultant today said land prices in the country will go up, affecting housing rates, after Cabinet approved the Land Acquisition Bill.
"It is not a good development for the industry. This will definitely increase land cost and housing prices," Confederation of Real Estate Developers' Associations of India (CREDAI) National President Lalit Kumar Jain siad.
If the Bill gets the Parliament's nod, developers will also hesitate to go for big projects, he added.
Expressing similar sentiments, National Real Estate Development Council (NAREDCO) President Navin M Raheja said the Bill is not an industry friendly one.
"While farmers' compensation issue is taken care of, the government should have looked at the overall growth of the country. Unfortunately, that is not the case here," he added.
Mumbai-based Hiranandani Constructions Managing Director Niranjan Hiranandani said with higher compensation to farmers, resistance in acquiring land will reduce in future.
On prices, he said: "Definitely land prices will shoot up. Now whether we will get land for affordable housing, is a big question mark."
Hiranandani said the companies are already acquiring land for private projects with almost 100 per cent consent of the owners, mainly farmers.
The country's largest realty firm DLF said the reaction and how it will affect the consumers, have to be seen after the Bill comes into effect.
"There has to be a debate in the Parliament for this Bill before the final approval. We will
